A friend of mine told me that she is closing on her house today. I ask her what do you mean? are you BUYING a home? she says YES! I was like WOW!!!! but the thing is that she has credit just as bad as mine. She has a job making about 8-9 dollars an hour, and she has 2 children. I asked if she got the loan on her own (w/o the help of the lame bf she's with) and she says she got it all by herself......My question is....Can you close on a house before actually getting approved for the loan? How does that work?
2007-11-08 05:58:55 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
no you cant. No only does she have to get approved for the loan, the bank has to approve the details of the sale, finish the underwriting AND give it a clear to close before you can close, usually that also means passing it through the attorney they are going to have representing THEM (the bank) at the closing table. No loan means that she had better have cash if she wants to close it, someone has to pay for the house at closing. In addition, usually her contract with have a mortgage contingency in it which will require her to provide proof to the other party.
2007-11-08 06:18:15 · answer #1 · answered by minyad 2 · 0⤊ 0⤋
The only think I can think of (in addition to what others have posted) is she is doing what we call a 'dry closing'. That is nothing more than paperwork being prepared in advance, signed, notarized, etc. However, the buyer doesn't get keys OR possession of the property until the pending loan is funded fully, and the seller receives the cash. If the loan fails, the paperwork is rapidly shredded.
2007-11-08 08:23:55 · answer #2 · answered by acermill 7 · 0⤊ 0⤋
No you can not. Closing on the house includes the seller getting paid for it. If they don't have the loan they have no way to pay for it. The only way I can see this happening is if the seller sells the house on a land contract, which means the seller agrees to loan the money to the buyer. This can be risky for both parties, so the seller usually asks for a considerable down payment to protect themselves. The buyer risks loosing everything if they miss even one payment.
2007-11-08 06:04:40 · answer #3 · answered by countryguyhfc 5 · 0⤊ 0⤋
No you can't. You have to have the $$$$ before you can get a home.
2007-11-08 06:16:27 · answer #4 · answered by VAgirl 5 · 0⤊ 0⤋
No, you can't. she's probably lying... maybe she's going to rent to own...
http://www.choicerealestate.net/
2007-11-08 08:03:53 · answer #5 · answered by Anonymous · 0⤊ 0⤋
No you cant
2007-11-08 06:11:19 · answer #6 · answered by Anonymous · 0⤊ 0⤋